Straight Talk About Raising Your Prices

It seems logical to lower your prices if you’re not getting all the clients you want. Of course, it’s tempting for many solo or small business owners to justify going low. But is the answer to lower … or could it be to raise your prices?

So, if business is down or if you’re just not bringing in enough income…

…then yes, it would seem logical to respond by cowering, playing a little smaller, and keeping your prices way down.

Hey, you have to compete, right?

Add to that the 24/7 media fear parade, and you end up with a hostile environment for the average solopreneur.

What better way to compete than by lowering your prices, right?

Well, actually, NOT right.

Wrong, in fact.

And here are three reasons that you should actually raise your prices:

(And as it turns out, there are TONS of better ways to compete. But we’ll get to that.)

1.Your business is SUPPOSED to make money.

(and here, I am stating the obvious, yet it’s amazing to me how many people forget this one)

Many solopreneurs got into business because they love what they do. They’d do it for free they love it so much.

And when the talk turns to money, all their “stuff” comes up.

So, it turns out, pricing themselves low is not a competitive strategy at all.

Turns out their low prices are merely a convenient way for them to avoid their fear of charging what they’re worth.

If that rings true, here’s a reminder:

Regardless of your LIFE purpose (or passion) — the purpose of YOUR BUSINESS is to make money.

And unless there’s a very good strategy behind being the cheapest “X” in your industry, there’s NO good reason to be a commodity and go for cheap. You’re not a tube of toothpaste or a box of tampons.

2. In most cases, bargain hunters make terrible clients.

Do you really want a client who went on a long search for the cheapest [insert your profession here] she could possibly find? How invested do you think this client will be in her own long-term results?

Here’s what I mean…

Many years ago, I offered three-day personal growth retreats for women. (Yes, I was still playing music for a living – but even back then, my passion was helping people live their dreams.)

At first, I didn’t know what to charge so I went for “cheap.” I looked around at what other people charged for retreats, and I went lower.

Slight problem, though…

At each retreat, there were always several women who – in the middle of the activities on the second day – would leave to go shopping downtown.

They completely abandoned the group and had no interest in doing any of the work I was teaching.

They just wanted new shoes.

While there’s nothing wrong with shopping – this certainly wasn’t the kind of person I wanted at my retreats.

When I raised the prices of the retreats (significantly), I no longer attracted the day-shopper ladies. I only attracted the people who truly wanted results.

And I learned a huge truth about money…

Money is a channel for the most powerful energy on the planet: Commitment.

If someone is not committed enough to her own growth, passion, fun, health, wealth or business to INVEST in it through working with you…

…then most likely, she will check out to go shoe shopping halfway through your work with her.

3. Pricing yourself too low is just plain lazy thinking.

You are SO much smarter than that tired old solution of pricing yourself low.

Being the cheapest or having the very best deal?

Yawn!

That’s like your lizard brain just took over your marketing department.

Don’t let your lizard brain take over your marketing department.

Now then, let’s ask the big question…

Should you raise your prices?

Yes, you should.

You absolutely should.

Will it be scary?

Probably.

If you know you should raise your prices, what’s keeping you from doing it now? Tell me in the comments below.

Love your articles. I’m curious about how you differentiate (and I know you do, because I see your integrity and authenticity) between Upleveling and just plain ripping people off. I’m assuming it’s a question of your time, the value of that time, and the customization of services. Is that right… or is it something else?

Hi Christine! I know you always preach about the unique snowflake syndrome. Please help me with my mindset because right now it is a blizzard of confusion.

As a professional organizer my passion is helping busy professionals tired of being overwhelmed by clutter who want to be free of what they no longer need and love who want to feel a sense of peace and pride in their home once and for all.

Here is the mindset struggle. Potential clients are familiar with hiring a cleaning person, a yard person and nanny but not as many are familiar with hiring a professional organizer. I know the value I bring and when I’ve priced packages to include the value and results of my on-site work and coaching I can tell they are “doing the math” for the time I will be on-site. I don’t know any other way to do this but hear you in my sleep telling us NOT to charge dollars for hours. At this point I include a number of hours since each home has different challenges and there is no way to really know until I am there how long it might take. I don’t know how they will make decisions and if I offer a per project basis it is possible I will get the short end of this.

Thank you, Christine. From Uplevel Your Life to Uplevel You Business to Gold Mastermind you have been an important and integral mentor for years.

This post is spookily relevant as just 2 days ago I negotiated a 33% increase in my rates. I am feeling slightly anxious about it now, even though deep down I know I am worth it and both me and my client know he has been getting a great deal over the last year. I have to keep that in mind!

This is so great AND timely. I’m making decisions about what to charge at my next round of retreats and the direction to take these. I do want to make more and totally agree that money equals commitment. I work with coaches (athletic coaches) who get these retreats paid for by their schools. No wonder they aren’t as committed! What an ah-ha!

It was so great for me to think about where I want to be instead of where I am now. I’m thinking and dreaming BIG! No matter how crazily people look at me!

I’m psyched for this cash flow training. You rock Christine (I did see you perform live in a little coffee shop in Granbury, Texas…back in the day…so I know this first hand!)

It was a SMALL coffee shop – and Granbury is near Dallas/Fort Worth. I was working on my masters degree from SMU & I took all of my work to this coffee shop – that I’d never been to before, near Lake Granbury. I got 1 of your cd’s and just loved your stories…and your music! I know I was supposed to be there…and follow you. Which I did…and I am!

CJ – in my experience, this is true, yes. It has been true all along for me. When someone is scared to invest in working with me, I always say, “Of COURSE you’re scared. It’s not about the money though. It’s about you finally saying, “YES! I’m DOING this. No more bs-ing around!”

And they always say that i’m exactly right. They’ve been able to kinda play it small until that moment.

Just know that you will lose people though. And they will tell you it’s about the money. And it’s not about the money. It’s about that calling to play bigger and really throw your hat over the fence. And you have to not be tempted to lower your prices because their fear makes YOU scared!

This is just what I need to hear right now. Thank you. Watched the 1st cracking the code video. Just call me chopped liver. But where do I find the link for the download about clarifying? I don’t see it on the page.

“That’s like your lizard brain just took over your marketing department.

Don’t let your lizard brain take over your marketing department.”

That cracked me up, Christine! Trying to keep my lizard brain out of the way as I design, price, and sell (deep breath here) my very first ever package (!) even though I’ve been running my own show for 20 years.

Thanks Christine, this is a very good “pep talk” for us who know that you are right. The lot of us that are working hard, giving good service but still can’t make ends meet. I will read this everytime I need to convince myself, a business must make money, otherwise it’s not a business!

Pete – if you want more than a “pep talk” – go through the cashflow code training. It’ll give you steps, strategies and several free downloadable tools to get you going on this. Let me know if you have questions! (i’m coaching people in the comments over there.)

I am a musician also. I’ve owned a teaching studio for over 10 years now. Back in 2009, I was working a ton and completely burned out. One of my coaches advised me to double my prices. It took me awhile to get up the nerve, very scary thing. But in the end it was the best thing I’ve ever done for myself in that business. I’m still running that studio and now I’ve launched a blog as well.

Hi Christine and thanks for this great article. I also recommend to everyone to work on their self-worthiness. If you don’t feel worthy, if you think you are not good enough… increasing your prices won’t work and keeping your prices too low won’t work neither in the long-run.

Work on your self worth, increase your vibration, be passionate about what you are doing and you will get better and better at what you are doing… and will be able to say with conviction: “I’m so great, I’m so fantastic, I can easily charge this and that…” – and you will literally start attracting those people who will be EXCITED to buy from you and they will love what they buy, they will tell their friends… all as a result of the vibration of “I am Worthy!” you created at the beginning.

So so so true, Robert. I train my clients from two places. I call them Strategy and Soul. So we have two tracks in every training in my Uplevel Academy for the very reasons you have outlined so beautifully here. You can’t ignore the energy part of success and confidence!